Question
McKibben, owner of a mining claim near Fairbanks, Alaska, signed a mining lease agreement with Mohawk Oil that provided that McKibben would receive 45 percent
McKibben, owner of a mining claim near Fairbanks, Alaska, signed a mining lease agreement with Mohawk Oil that provided that McKibben would receive 45 percent of the value of all ores and minerals mined. When the ore mined had a specific low value, however, McKibben would only receive 10 percent of the value of the ores mined. McKibben discovered that Mohawk Oil was diluting the ore and removing precious metals without reporting this to McKibben as required by the lease. McKibben sued, seeking both compensatory and punitive damages. Can punitive damages be recovered by this breach of contract? Why or why not?
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